Ladbrokes-owner and Aston Martin on chopping block in FTSE reshuffle
Ladbrokes-owner Entain and Aston Martin are among a handful of firms facing the chopping block in the looming quarterly reshuffle of the London market indices.
Entain is slated to tumble out of the FTSE 100 after a bruising period, made worse by the increase of taxes on bookies.
The betting business “has battled with high UK gambling taxes, increased competition, and slower than expected growth in the US,” Dan Coatsworth, head of markets at AJ Bell, said.
A new 25 per cent betting levy – introduced under former Chancellor Rachel Reeves – will take place from April 2027 and target remote and online betting. But from April 2026, Reeves hiked the remote gaming duty, which applies to online casino-style games, to 40 per cent from 21 per cent.
Entain said the changes could reduce its earnings by roughly £100m in 2026 and £150m annually from 2027 even after it took steps to reduce marketing spend and promotions.
Housebuilder Persimmon is expected to join the betting company in relegation, which Coatsworth described as “a sign of the times amid a depressed property market”.
Earlier this year, the firm flagged concern over inflationary pressures in its supply chain which it expects to impact its bottom line in the second half of the year.
Skyfall from FTSE 250 for Aston Martin
Slated to replace the pair is oil and gas firm Ithaca, which has enjoyed a rally on the back of elevated energy prices from the US-Iran war, and Easyjet. The low-cost airline shares have surged ahead of its £5.7bn takeover by asset manager Apollo that will see it picked off the London market.
On the FTSE 250, Aston Martin is tipped to drop off the mid-cap index after a painful few years.
The luxury car firm, known for its association with James Bond films, said it would axe 20 per cent of its workforce earlier this year after its net losses swelled 52 per cent to nearly £500m. It blamed part of its woes on “extremely disruptive” US tariffs as well as “extremely subdued” demand in China, the world’s biggest car market.
The Warwickshire-headquartered firm employs around 3,000 people, meaning job losses will total around 600.
“Aston Martin continues to struggle on the stock market as investors worry about the state of its finances,” Coatsworth said.
The changes will take place based on market close data from the 1 September trading session. Those moving will be announced after the market closes the day following.